The chart of the week illustrates how an impressive 72% of companies within the S&P 500 performed below the index in 2023. It’s worth noting that the S&P 500 operates on a market-capitalization basis, where larger companies hold more weight in the index. This statistic aligns with the overarching theme of 2023—the rise of the “Magnificent Seven,” seven huge companies that significantly influence the index and experienced remarkable success during the year. As the year progressed, market breadth expanded, with various investment styles such as small-cap stocks showing significant growth. The future will reveal whether the dominance of the Magnificent Seven endures or if the markets diversify further in the new year.

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